Annual vs Monthly Subscription Plans for B2C

Long-term B2C subscription success often depends on a steady increase in acquisition rates, a decline in churn rates, and a steady increase in customer lifetime value (CLV). Pricing agility that allows businesses to offer customers choice and flexibility of subscription plans is a key contributor to success.

While there are a lot of variables that determine a customer’s preferred subscription plan, there are some overarching trends that businesses should consider while designing their offers.

Zuora’s Subscribed Institute analyzed Subscription Economy Benchmark data to understand the impact of the plan period (annual and monthly) on B2C subscriber acquisition and churn rates.

Download this benchmark to understand:

  • How annual and monthly plans affect subscriber acquisition and churn rates
  • The benefit of offering multiple subscription plan terms
  • The average pricing difference between annual and monthly plans and its impact on CLV